01—Abstract
Summary
Summary of the 10-K filed February 24, 2023. Cited figures are marked; the original filing is the authoritative source.
TechnipFMC plc (FTI) reported a revenue of $6.7 billiona for the fiscal year ended December 31, 2022, a modest increase of 4.6% from the previous year, driven by stronger performance in its Subsea and Surface Technologies segments.
The Subsea segment experienced a revenue increase of 2.5% to $5.46 billionb, supported by higher project and services activity, particularly in Brazil and the UK, and a significant 36% rise in inbound orders to $6.74 billion. The Surface Technologies segment saw a more robust revenue growth of 15.3% to $1.24 billion, primarily due to increased operator activity in North America and resilient international markets. The company reported a net loss of $107.2 million for the year, a significant shift from the $13.3 million net income in 2021.
This was largely influenced by a $27.7 millionc loss on its investment in Technip Energies and a $29.8 million loss on early extinguishment of debt, alongside other operational factors. Despite the net loss, the company's operating profit from continuing operations improved significantly year-over-year, with Subsea operating profit more than doubling to $317.6 million and Surface Technologies operating profit increasing to $58.3 million. TechnipFMC also announced plans to initiate a quarterly dividend in the second half of 2023, signaling a focus on returning value to shareholders.
02—Key points
Key Highlights
- Revenue grew 4.6% to $6.7 billion in 2022, driven by strong performance in both Subsea and Surface Technologies segments.
- Subsea segment inbound orders increased by 36% to $6.7 billion, reflecting market recovery and growth in deepwater developments.
- Surface Technologies segment revenue rose by 15.3% to $1.24 billion, fueled by increased drilling and completion activity, particularly in North America.
- The company reported a net loss of $107.2 million for 2022, compared to a net income of $13.3 million in 2021.
- Operating profit for the Subsea segment more than doubled to $317.6 million, and Surface Technologies operating profit increased to $58.3 million.
- TechnipFMC has announced its intention to initiate a quarterly dividend in the second half of 2023.
- The company ended the year with a robust order backlog of $9.35 billion, up from $7.66 billion in the prior year.
03—One dollar
Follow one dollar
For each $1.00 of revenue in FY2022, TechnipFMC plc lost $0.02.
- Revenue$6.70B100.0%
- Cost of revenue−$5.79B86.5%
- Gross profit$907.1M13.5%
- Operating costs−$531.2M7.9%
- Operating income$375.9M5.6%
- Interest, other & tax−$483.1M7.2%
- Net income−$107.2M1.6%
04—Financials
Financial Highlights
Figures from 10-KFY2022filed February 24, 2023Financial Statements
FY2022 against FY2021
| Line item | FY2022FY2021 | Change |
|---|---|---|
| Revenue | $6.70B$6.40B | +4.6% |
| Cost of Revenue | $5.79B— | — |
| Gross Profit | $907.10M— | — |
| R&D Expenses | $67.00M$78.40M | −14.5% |
| SG&A Expenses | $616.80M$644.90M | −4.4% |
| Operating Expenses | $6.50B$6.37B | +2.1% |
| Operating Income | $375.90M$183.40M | +105.0% |
| Interest Expense | $138.70M$157.30M | −11.8% |
| Net Income | -$107.20M$13.30M | −906.0% |
| EPS (Basic) | $-0.24$0.03 | −900.0% |
| EPS (Diluted) | $-0.24$0.03 | −900.0% |
| Shares Outstanding (Basic) | 449.50M450.50M | −0.2% |
| Shares Outstanding (Diluted) | 449.50M454.60M | −1.1% |
05—Questions
Frequently Asked Questions
What was TechnipFMC's overall financial performance in 2022?
TechnipFMC reported a total revenue of $6.7 billion, a 4.6% increase from 2021. However, the company experienced a net loss of $107.2 million for the year, a reversal from a net income of $13.3 million in 2021. This was primarily influenced by various one-off expenses and investment revaluations. The company's operating profit from continuing operations did show improvement, with the Subsea segment's profit more than doubling and Surface Technologies' profit also increasing.
How did the Subsea and Surface Technologies segments perform in 2022?
The Subsea segment saw a 2.5% revenue increase to $5.46 billion, supported by higher project and services activity and a significant 36% rise in inbound orders to $6.74 billion. The Surface Technologies segment delivered stronger growth with a 15.3% revenue increase to $1.24 billion, driven by increased drilling and completion activity in North America and resilient international markets. Both segments contributed to an overall improvement in operating profit.
What is the company's outlook and future plans for shareholder returns?
TechnipFMC anticipates continued growth in 2023, supported by an expected increase in upstream spending and energy demand. The company is confident in conventional resources' role in the energy mix and is actively pursuing opportunities in the energy transition. Notably, the company announced plans to initiate a quarterly dividend in the second half of 2023, signaling a commitment to returning value to shareholders.
What is the company's order backlog and outlook for future revenue?
TechnipFMC ended 2022 with a strong order backlog of $9.35 billion, an increase from $7.66 billion in 2021. The company expects further growth in 2023, with inbound orders projected to exceed $8 billion, particularly driven by a significant increase in integrated project awards within the Subsea segment.
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